Are race teams profitable?

This discussion is rampant in other threads; however, I thought the topic deserved a dedicated thread.

Does anyone know how many NASCAR teams actually "make money"?

On the surface, it seems (at best) to be profit neutral, with most owners having substantial business interests outside the sport.

(NOTE: this is also true of most sports franchise owners, NBA, NFL, etc.)

From the outside looking in, this point is what makes the SPEED endeavor so interesting. Clearly, energy drinks make money.

I'd be interested in thoughts, fact and speculation. Please note: I'm confident there are profitable teams....I'm wondering if that is the exception or the rule.

Views: 871

▶ Reply to This

Replies to This Discussion

Permalink Reply by GTX - HEMI on February 28, 2012 at 5:30pm

Make money how.................RCR just commented that to go to the new cooling package this year cost him 350K and that's just for the plate races. I wouldn't even try to figure out how much it cost to go to FI. When sponsorship $$$ are at a preimum and teams seem to be down sizing it doesn't make sence to go to an out dated system of FI. Now that gas is close to $4 a gallon I don't see many butts in the seats this year.

Permalink Reply by 7gason7 on February 28, 2012 at 5:32pm

RG said it takes 14 hours to machine the old intakes into FI intakes

Permalink Reply by Adam G on February 28, 2012 at 10:48pm
I'll call Rick Hendrick and ask what the payroll is a week. My personal guess is 1.1 million
Permalink Reply by WJM on February 28, 2012 at 11:47pm

I think you have to go far down the team owner list to find someone who perhaps relies primarily on their NASCAR team to provide them with a paycheck. Joe Nemechek, Tommy Baldwin, Dusty Whitney, Larry Gunselman, etc.

Permalink Reply by marc stein on February 29, 2012 at 12:01am
All racing sports are losers for an investment, everyone that races and pays the bills (Maybe Nascar is different) loses money like no tomorrow.
Boat, Airplanes, Cars they all lose money
Again we need Walmart, Albertsons, Fred Myers, Sears, Nordstrom, Dillards, Qualcom, www.aceuniforms.com, someone needs to put up the extra Million to Five Million to make Robby a winner.

FYI When you win the Baja 1000 you win $10,000.00 and the gas to pre-run and race a Trophy Truck like Robby does at $8.00 a gallon (1000 miles plus pre-run the course twice 2000 miles-- 4 miles to the gallon you get it 3000 miles divided by 4 mps you get it the winning prize money does not even cover the race, chase, prerun gas bills)
Permalink Reply by mj on February 29, 2012 at 12:22am

LOL at boats . Do you know what BOAT means

B ust
O ut
A nother
T housand

Permalink Reply by WJM on February 29, 2012 at 1:25am

Well, Mr. Stein, owner of Ace Uniforms, write that check.

Permalink Reply by chuck w on February 29, 2012 at 9:52am

heres the numbers what the teams are in 2011

Heres the numbers for 2011 scroll down half the page
http://www.forbes.com/nascar-valuations/

2008
Rank, Team, Value, Revenue, Operating Income
1 Hendrick Motorsports (4/2) $335 179 21.3
2 Roush Fenway Racing (5/4) 313 173 29.6
3 Joe Gibbs Racing (3/2) 184 116 11.7
4 Gillett Evernham Motorsports (3/1) 150 96 12.9
5 Richard Childress Racing (3/3) 130 107 20.9
6 Dale Earnhardt Inc. (4/0) 109 86 5.0
7 Penske Racing (3/1) 100 85 8.6
8 Chip Ganassi Racing (3/2) 94 78 5.5
9 Michael Waltrip Racing (3/1) 86 65 -4.3
10 Yates Racing (2/0) 74 54 4.6
11 Red Bull Racing Team (2/0) 54 41 -7.0
12 Petty Enterprises (2/0) 44 37 2.9
13 Haas Cnc Racing (2/0) 41 32 -3.1
14 Bill Davis Racing (1/0) 36 28 2.5
15 Robby Gordon Motorsports (1/0) 28 18 1.2
. AVERAGES (All figures in millions) $119 $80 7.5

Here is 2011 numbers
http://www.forbes.com/2011/02/23/nascar-most-valuable-teams-busines...
" Hendrick earned a Nascar-high $18 million in operating income (earnings before interest, taxes, depreciation and amortization) in 2010 as Johnson racked up another Cup title."
Securing new primary sponsors for $20 million is a difficult proposition in a weak economy. "The work off the racetrack, between the car owners and sponsors right now, it's probably more competitive than I ever imagined it would be," said driver and owner Tony Stewart at the Nascar media tour in January. The deals get expensive because the rule of thumb in Nascar is that for every dollar you spend sponsoring a car, you need to spend two on advertising and marketing to make the investment worthwhile.

Permalink Reply by Dave-O on February 29, 2012 at 10:04am

Pays well to be just a driver - Dale Jr cleared $26 mil last year, according to Forbes

Permalink Reply by Mike Kenyon on February 29, 2012 at 10:44am

good thing results aren't means of that income.

Permalink Reply by Vicki Becker on February 29, 2012 at 6:00pm

Dale's income wasn't just from driving the 88, he also got a cut from merchandise/apperances etc.

Permalink Reply by Mike Kenyon on February 29, 2012 at 11:42pm

@Vicki, you missed the sarcasm alert.JR's like guys that play golf-it's endorsements .

RSS

© 2024   Created by TOG.   Powered by

Badges  |  Report an Issue  |  Terms of Service